Causes of Great Depression
Effects of the Great Depression & New Deal
New Deal Programs #1
New Deal Programs #2
Random
100
True or False. Initially, during the Great Depression both the US government and it's citizens were completely broke and in debt.
False. The US economy was horrible; however, the US government was NOT in debt until after the New Deal programs were created.
100
True or False. The Great Depression primarily affected the United States and had minimal impact on other countries.
False
100
FDR created the new deal. What was the new deal?
The New Deal was created in by President Roosevelt to try to combat the Great Depression.
The New Deal aimed to provide relief, recovery, and reform to the American people and the economy.
As a result of the New Deal the federal government grew dramatically and the impact of his programs can be seen in a variety of government programs that we have today.
100
Define relief, recovery, and reform
relief: aid
recovery: job
reform: law
100
What was the great depression?
when the stock market crashed.
200
What was US foreign policy during the Great Depression? Why?
Isolationist: we had to focus on ourselves to rebuild our broken country.
200
List two direct effects of the Great Depression.
- banks closed
- unemployment
200
What was social security?
retirement for elderly.
200
What did this program do? Tennessee Valley Authority (TVA)
Created affordable water, power, electricity in the Tennessee Valley Area.
200
How do banks work?
The money in the bank is not physically in your account
300
List 3 causes of the Great Depression.
Despite a booming economy, there was an uneven distribution of income
People played the stock market to get rich through speculation (they bought stock, waited for price to rise, and then sold it for profit)
People bought stocks on margin (credit) by borrowing money from a stock broker to buy stock
People used credit to buy consumer goods and then ended up with a massive debt they couldn’t pay
Overproduction of consumer goods
Weak farm economy
There was no government regulation of business
300
List 3 positive impacts of the New Deal.
Decreased unemployment
Increased Wages
Increased peoples’ savings
Also lowered suicide and homicide rates
300
What program is this:
Its primary goal was to stabilize agricultural prices and provide relief to struggling farmers. In an effort to increase prices, farmers were paid to reduce supply by destroying surplus of crops and livestock. Farmers were also paid not to plant crops.
Agricultural Adjustment Act
300
What was the National Labor Relations Act (NLRA) and give an example of what it did?
Created labor unions
- pensions
pay increase, etc.
300
What is credit?
You borrow money from the bank or credit card companies to use, then have to pay it back (sometimes with interest)
400
What were 2 different ways that people bought stocks during the Great Depression?
1. sold their houses and belongings to get money and buy stocks
2. used credit
400
List 2 negative impacts of the New Deal programs
- federal debt increased
- unequality in who gets jobs, etc.
400
What was the Federal Emergency Relief Act?
What could the funds be used for?
States receive money.
homeless shelters and soup kitchens.
400
List one program that created new jobs and explain the kind of jobs it created.
- WPA: construction
- PWA: construction
- FAP: artists
400
What is a stock?
A stock is a share in a company
500
In detail explain chronologically how this stock market crash triggered a massive economic depression that lasted 10 years.
Ex: stock market crashed...banks failed...
1. banks failed and people could not take out their money.
2. With lower demand, businesses didn’t need as many workers which led to massive job layoffs
3. Without a job, people were unable to pay off their credit debt
4. In the depressed economy, there was little money to invest in businesses to create new products and jobs
all this led to panics.
500
New Deal programs pumped billions of dollars into the economy through new jobs and public work programs
Where this money is coming from?
Government wasn't in debt at the time. The money was coming from taxing the rich and selling bonds to other countries.
500
What two programs help rebuild the people's trust in banks and stocks? Explain one example law they created?
SEC: Regulates stocks
- no buying stocks in credit
- no insider trading
FDIC: Insures money up to 250k today
500
using 3 examples, explain how the New Deal attempt to fix problems from the Great Depression?
created different programs that provided reform, relief, and recovery such as...
500
What major crime was Dillinger known for during the Great Depression and explain why the people treated him like a hero as a result?
Dillinger, portrayed as a modern-day outlaw, became a symbol of rebellion against the perceived injustices of the financial system.
His daring bank robberies and confrontations with law enforcement were romanticized by the media, elevating him to celebrity status.